Ont. man facing extradition found in Saskatoon
Man located in Saskatoon is facing two fraud charges over wind turbine business
A Canadian man who once received accolades in the green energy sphere has lost his case to avoid extradition to the United States.
James Alan Rowan was apprehended in Saskatoon, where he was living in his parents’ house. A Saskatoon judge committed him to be extradited to the U.S. to face two fraud charges filed against him amid allegations he deceived investors into believing his company, Enviro-Energies, had developed a landmark wind turbine technology.
Rowan spent nearly four years at large after he was indicted by a U.S. grand jury on one count of wire fraud and one count of securities fraud. The extradition won’t take place until 30 days after Justice Gerald Allbright’s April 6 ruling, giving Rowan time to appeal the decision.
Crown prosecutor Sean Sass, who argued the case on behalf of the Attorney General of Canada, confirmed Rowan’s extradition hearing was held in Saskatoon because he is living here. Sass said he could not comment further.
Rowan’s lawyer, Chris Veeman, deferred comment until after the case goes through the appeal process.
Rowan was indicted by a federal grand jury in Raleigh, N.C., in October 2013. The charges stem from allegations that Rowan, chairman and president of Enviro-Energies, claimed to have developed and patented wind turbine technology, which he called Mag-Wind turbines, that did not require a tower to support the turbine and told potential investors, customers and distributors about it.
According to the FBI, Rowan aggressively marketed the technology online and in person and it was endorsed by Hollywood celebrities, including Ed Begley Jr. and Jay Leno.
In a 2013 statement, the FBI said the grand jury alleges Rowan made “false and deceptive” claims about the technology to investors and customers, “exaggerating its power generation capacity, falsifying scientific and technical data, and falsifying information regarding his capacity to manufacture and distribute the Mag-Wind turbines.”
The FBI said the grand jury further alleged that Rowan persuaded investors to purchase shares in Enviro-Energies, after convincing them the shares would be listed publicly following an initial public offering. Investors who bought shares allegedly did not receive share certificates.
According to an affidavit filed by Saskatoon RCMP Const. Derek Stroh, Rowan was living in Saskatoon at two addresses, including his parents’ home.
Stroh stated that Rowan had a valid Saskatchewan driver’s licence, listing his address as his parents’ house and had been using vehicles registered to his family members. Following a Privacy Act request, Statistics Canada confirmed to Stroh that Rowan had worked for StatsCan as a field interviewer last fall.
Rowan is believed to have moved to Saskatoon from Fonthill, Ont., near Grimsby, where he operated his wind turbine company, Enviro-Energies.
“I believe that Rowan has knowledge of the U.S. grand jury indictment returned against him and is reluctant to return to the U.S. to face prosecution of the charges,” Stroh wrote in the affidavit.
According to documents filed in Court of Queen’s Bench, six investors are expected to testify against Rowan at a trial in North Carolina. The investors, who either bought stock or distribution rights for Mag-Wind turbines, claim to have paid Rowan a combined $800,000 and received nothing in return. One investor paid $25,000 via PayPal, but later successfully disputed the transaction with American Express after not receiving the turbine, according to the documents.
The U.S. prosecution also expects to call testimony from a Michigan engineer who says Rowan’s wind turbine failed to generate as much energy as Rowan had claimed it would, and from a Securities and Exchange Commission employee who found no evidence Rowan tried to register Enviro-Energy securities between August 2008 and March 2010.
The allegations have not been proven in a court.
“As the extradition judge, I am called upon to decide whether if the Crown’s evidence is believed a reasonable jury properly instructed could return a verdict of guilty. As indicated, I am satisfied that had the conduct outlined in the Record of the Case for the extradition partner taken place in Canada there would be sufficient evidence to commit James Alan Rowan to stand trial on a charge of fraud contrary to s. 380 of the Criminal Code,” Allbright wrote in his decision.
Rowan was ordered into custody to await extradition. If convicted in a U.S. court, he could face a prison term of up to 20 years for wire fraud and up to 20 years for security fraud.
I believe that Rowan has knowledge of the U.S. grand jury indictment returned against him and is reluctant to return to the U.S. to face prosecution of the charges.